The Tamil Nadu State Government introduced its first-ever electric vehicle (EV) policy. The Tamil Nadu Electric Vehicle Policy, 2019, provides for various concessions to manufacturers of e-vehicles. Tamil Nadu, known as the Detroit of South India, accounts for 6.4% of the electric vehicles sold in the country as of July 31, 2019.
To encourage start-ups in the EV sector, incubation services will be offered in the form of office space, common facilities and mentoring support.
An EV Venture Capital Fund will be created to offer financial support to EV start-ups to enable them to scale up their business.
EV-related and charging infrastructure manufacturing units will be provided 100% exemption on electricity tax till December 2025.
Units that obtain land by sale or lease shall be entitled to 100% exemption on stamp duty for transactions till December 2022. Units that obtain land from SIPCOT, SIDCO or other governmental agencies will be provided a 15% subsidy on the cost. They will be provided 50% subsidy if the investment is in the southern districts.
The government will provide a higher capital subsidy of 20% of the eligible investment over 20 years in cases where units are engaged in making EV batteries.
Amendment to building and construction laws will ensure that charging infrastructure is integrated at the planning stage itself for all new constructions in cities.
Chennai is home to major automobile manufacturing firms, including Hyundai, Ford, Nissan, TVS, Mahindra and Daimler